Hundreds of people find themselves in financial situations that lead them to make choices they would not have ordinarily considered. When families are faced with a crisis they seek for the quickest method with the best results. This is true for any situation. Debts do get out of hand sometimes and most people are able to resolve the issue before it puts them in a financial dilemma. Others are not able to resolve their problems quite so easily. Their options are ones they have weighed and consulted an bankruptcy attorney about.
A chapter 7 bankruptcy attorney and a chapter 13 bankruptcy attorney work along similar lines; except their are a few minor differences. For example, individuals filing a chapter 7 can expect their property to be sold and the funds to be distributed among their creditors. This type of filing protects the individual assets and allows him or her to generate a fresh start. This is the quickest method and yields the best results. However, this option may be for everyone. It is designed for the person who wants to get back on the road to financial freedom, by eliminating or stabilizing debts.
Another option that many people consider is a chapter 13 bankruptcy filing. This filing status differs from chapter 7 in regards to payments. Chapter 13 participants consolidate their debts into one monthly payment. Student loans, mortgage payments, credit card debts, car loans and other outstanding debts qualify for repayment under the chapter 13 ruling. This is the best options for individuals who do not wish to sell off any assets.
To be approved for this type of debt relief they must have a consistent income. This means they must have a regular paying job or a reliable source of income. It can be a government, insurance, or retirement check. The individual enters into an agreement with the court to make timely monthly payments towards their debts for the next 3 to 5 years. The individual must also be financial capable of maintaining their living expenses while they are under the chapter 13 filing rule. These requirements are not negotiable. Individuals who do not maintain or have a consistent income are not eligible for chapter 13 but they may be eligible for chapter 7.
The majority of individuals do not know which filing status they need. For some people it is a personal choice and for others it is the only way out. An consultation with an experienced bankruptcy attorney will help to decide which option is the better choice for resolving debts. All decisions regarding payment plans, debt consolidation, and other financial matters should be answered by an expert in bankruptcy law, because rules and laws can change at any time.